This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

GM Needs to Do This Now to Avoid Bankruptcy

Stocks in this article: F GM TM

After it filed for bankruptcy in 2009, the automaker's image has remained fragile in the eye of the U.S. consumer. It was dubbed "Government Motors" after receiving a roughly $50 billion bailout from the U.S. government. 

CEO Mary Barra needs to make a stand. She needs to tell the public why they should still be walking into a dealer with a Chevrolet, Cadillac, Buick or GMC logo on the building. 

Every newspaper, Internet headline and news station is pointing out the company's blunders each day in the form of additional recalls and fines over its handling of the fatal ignition-switch problem. 

What if General Motors came out with a full 60-second television ad, with solely Barra on TV. Forget all of the Our trucks can do this and these cars get this many miles per gallon. 

Because that's not what's swaying U.S. consumers when this type of news hits. Ford's trucks do the same thing, and its cars get the same miles per gallon, arguably speaking. 

Instead, put Barra on TV, and have her apologize to customers about all of the issues GM is having. It's not her fault -- she walked into the situation in January -- but that doesn't mean consumers will give the company a pass. 

She needs to apologize on behalf of her company and explain why General Motors is still a brand to be bought and trusted, and detail why the recalls are good for the company long term. Highlight the fact that contrary to current belief, GM does care about safety and that's why there have been so many recalls. 

Once customers leave, they're hard to get back. And that's the last thing GM needs. It can't afford to lose sales. An apology ad is cheaper than lost customers. 

>>Read More: Kass: Keep Clear of the Consensus

>>Read More: Apple's 7: 1 Stock Split: Take a Bite Before June 2

>>Read More: Electric Cars Won't Make Your Air Any Cleaner


This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

At the time of publication, Kenwell had a long position in Ford. 

-- Written by Bret Kenwell in Petoskey, Mich.

Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,356.87 +288.00 1.69%
S&P 500 2,012.89 +40.15 2.04%
NASDAQ 4,644.3120 +96.4780 2.12%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs